Friday News Roundup: Week of June 7-11

At Ed Money Watch, we discuss and analyze major issues affecting education funding. In our Friday News Roundup, we try to highlight interesting stories that might otherwise get overlooked. These stories emphasize how federal and state policy changes can affect local schools and districts.

 <p><b>Michigan</b><b> School</b><b> Aid Fund Sees Unexpected Surplus</b></p>     <p><b>University of Wisconsin Regents Agree to 5.5 percent Tuition Hike</b></p>     <p><b>Proposed Budget Cuts would Devastate University of North Carolina System</b></p>   <p><b>Michigan</b><b> School</b><b> Aid Fund Sees Unexpected Surplus</b><br>State officials expect that sales tax revenues earmarked for Michigan’s K-12 school financing will be about <a href="http://www.businessweek.com/ap/financialnews/D9G8DECO0.htm">$300 million higher</a> than what was predicted for the year. While this could mean a bump in funding for schools, lawmakers are considering using some of that money to fill an equal-sized gap in the state’s current fiscal year 2010 general fund. If officials use the surplus to fill in the general fund, it would have to support education-related purposes like the state’s community colleges, universities, and some other education programs that are funded through the general fund. Some lawmakers argue that the state’s K-12 schools have already faced significant cuts in recent years and would benefit from keeping the $300 million as school aid. Lawmakers are also uncertain about how much federal aid they will receive this year, leaving the actual size of the gap in the general fund up for debate. <a href="http://www.businessweek.com/ap/financialnews/D9G8DECO0.htm">More here…</a></p>     <p><b>University of Wisconsin Regents Agree to 5.5 percent Tuition Hike</b><br>The Board of Regents for the University of Wisconsin this week voted to approve a <a href="http://www.businessweek.com/ap/financialnews/D9G92LFG0.htm">5.5 percent tuition increase</a> for undergraduate students at 11 of the system’s 13 campuses this fall. Though the Regents expressed reservations about the effect of an increase on the state’s students and families, they felt that there was no good alternative given recent cuts in state aid. The increase in tuition will protect instructional and support services, keep class sizes from increasing, and prevent faculty reductions. They will also help cover employee health care and retirement costs. Students from families earning less than $60,000 per year are expected to receive an increase in state aid that would cover the amount of the tuition increase. The state increased financial aid for the same set of students after a similar tuition increase last year. Meanwhile, tuition at community colleges will be frozen for the fourth straight year. <a href="http://www.businessweek.com/ap/financialnews/D9G92LFG0.htm">More here…</a></p>     <p><b>Cuts in House Proposed Budget would Devastate University of North Carolina System</b><br>As the North Carolina Senate and House of Representatives are working to come together on a fiscal year 2011 budget, the state’s university system is bracing for <a href="http://www.news-record.com/content/2010/06/10/article/state_house_cuts_would_devastate_unc_system_bowles_says">another round of cuts</a>. University officials say they can cope with the Senate’s version of the budget, which would cut aid to the University of North Carolina (UNC) system by $54 million from current fiscal year 2010 budget of $2.7 billion. However, the House budget would more than triple those cuts, and officials say a cut of that magnitude will devastate the system. UNC system President Erskine Bowles said the House cuts would mean cutting about 1,700 jobs, most of them faculty jobs. This would cause reductions in course offerings, increase class sizes, and delay graduation for students who aren’t able to take required courses in time. The budget would also cap enrollment growth in the 2011-12 school year at one percent, a move that Bowles said is unprecedented in the state. State funded need-based financial aid for students would be less than half of the $34.9 million requested by UNC under the House plan. The UNC system has already taken $575 million in cuts over the past three years. <a href="http://www.news-record.com/content/2010/06/10/article/state_house_cuts_would_devastate_unc_system_bowles_says">More here…</a></p><!--break-->